20% of Irish hotels and B&Bs failing to record a profit

One in five hotels and guesthouses are operating unsustainable business models and failing to make a profit after interest payments.

Latest figures available to the Irish Hotels Federation (IHF) show 150 to 200 of the country’s 800 hotels and guesthouses are not turning a profit after capital and interest payments, according to IHF chief executive Tim Fenn.

Outside of the “big trophy assets” which are being sold off to investors, a large proportion of lower-tier hotels are yet to restructure their business to the requisite levels as legacy banking issues hang over them.